A stock market brings together thousands of investors and traders who want to buy and sell stocks. It is a safe and regulated environment to ensure fair prices and transaction transparency. Shares and other financial instruments can be traded freely and free of charge. Initial public offerings (IPOs) take place on stock exchanges, while the listed shares of thousands of companies are traded on secondary markets. The shares of these companies are traded on the stock exchange according to the rules laid down by the SEBP (Securities Exchange Board of Pakistan).
With the trading platform, you can access the stock market by opening a Demat account and a trading account to trade any listed stock. SEBI-registered brokers can offer online trading services through Demat and trading accounts. They provide a trading platform for trading eligible financial securities on various exchanges.
Brokers can offer their clients various benefits when signing up for trading and Demat accounts. These benefits include free Demat accounts and business accounts. Also, they can offer free Demat account maintenance for a specified period.
For investors in Pakistan, there are no free shares to subscribe for, but they can benefit from free Demat and trading accounts, research reports, maintenance and delivery.
Let's explain what Demat and business accounts are.
How does a Demat account work?
A Demat account is an online account to hold a person's financial assets. Every title you buy will be reflected in your Demat account. Own your stocks, mutual funds, futures and options, commodities, bonds, etc. In addition to understanding the meaning of a Demat account, it is also essential to understand its types.
Basic or regular Demat accounts are available for investors. You can choose from several investment options depending on your investment needs. You should opt for a basic Demat account if you plan to hold bonuses worth up to Rs.2 lakhs at any given time. If the bond value is less than Rs 50,000, there will be no annual maintenance fee. More than 50,000 users will pay nominal maintenance fees.
You will need to open a regular Demat account to hold your investment when the amount exceeds Rs.2 lakh. You don't have to worry about keeping titles. There are no restrictions on the number of protection types you can purchase. When the value of your bonds exceeds Rs. 2 lakhs in your basic Demat account, your broker will usually change it to a normal Demat account. Maintenance costs are the same as for traditional Demat accounts. You can get free account maintenance for the first year or two after opening your account, but after that, you will have to pay the maintenance fee (AMC).
How does a business account work?
The stock market trades various stocks and other securities through exchanges. Investors need an online trading account with a stockbroker to buy and sell stocks. Using the trading platform provided by your broker, you can access the exchanges by logging into your trading account.
The linked merchant account is credited with the sale proceeds and debited with the purchase proceeds. The connected Demat account is credited with the titles purchased and the proceeds of the sale are debited.
There are many exchanges where you can trade various securities such as stocks, IPOs, mutual funds, and derivatives. You can open a regular trading account to sell these securities. A trading account can be a stock and derivatives trading account, a commodity trading account, or a margin trading account. Inform the broker of your trading objective when opening a trading account.
Choose a subscription brokerage plan from a discount broker to open your Demat and trade accounts for free through a hassle-free, 100% digital process.
The Best Stock Brokers to Choose From
Many Pakistani brokers have been in the market for over two decades and are known for their efficient services.
You must be ready to face sudden changes in market trends. Trade stocks, currencies, and futures with these brokers